Failing to think about your superannuation can have a big cost
Here’s a startling fact for you. According to the Senate Inquiry into Women’s Economic Security in Retirement findings released in April 2016, one in three Australian women retire with no super at all. Let me say that again: one in three Australian women retire with NO SUPERANNUATION.
I don’t know about you, but that information is positively terrifying to me. As women, we tend to live longer than men, but due to a variety of factors including, but not limited to, time out of the workforce to raise children, the gender wage gap, working in lower paid caring fields, relationship breakdowns and more, we are retiring with less money that needs to stretch further.
And if you’re a woman who is self-employed, the situation is probably even worse. Firefly Wealth managing director Adele Martin says failing to pay themselves superannuation is the single biggest mistake that small business owners make. It can be easy to make the mistake of assuming that the business itself is your superannuation nest egg, but you may find your business is not valued as highly as you thought or technology changes can disrupt your industry and strip all value from it.
The government isn’t going to save you
Many women I speak to at my events still seem to think that it’s all going to be ok if they don’t have much money in their superannuation fund, as they’ll be able to get the government old-age pension. Ladies, it’s time to stop telling yourself this lie and start taking steps now to protect your financial security. The government pension is getting reduced constantly and is not keeping pace with inflation. Whatever meagre amount might still be provided by the time you retire is not going to be enough to cover even basic living expenses.
Super goals for women
According to the ASIC website, www.moneysmart.gov.au, in 2013-14, Australian women aged 60-64 had on average $138,150 in super savings – less than half of the average male super balance. It is essential for women to focus on growing your super balance and retirement income.
Debate abounds on how much you need in your superannuation to have a comfortable retirement, but regardless of whether the commonly bandied figure of $1 million is a myth or not, there’s no denying that women in particular need to take a more active role in managing superannuation goals.
An important first step is to work out what your priorities are for retirement and determine a budget for how you will fund those priorities. If you haven’t been thinking about your retirement finances, make the decision to change now.
Don’t rely on family members or the government to take care of your future
Now is the time to take control of your financial security. Don’t leave it to your husband/partner/children/government. It’s your future and your responsibility, so get yourself informed and take action. Start with these questions:
Who is investing your money?
Where it is being invested?
How much return are you getting on the investment?
What fees are deducted before you are paid a return on your investment?
Are you reading the statement for your super fund?
Have you consolidated all your super funds into the one account?
Taking time to understand your super and ensuring it is wisely invested will always be time well invested.
A good income-generating investment can make the difference
Developing an investment strategy that will provide you with ongoing income is a great way that women can plug the superannuation gap. And industrial property is one asset class that can do just that.
Money Factory Investing runs workshops especially for women just like you to find out more about investing in industrial property. We’ll answer all your questions – no matter how big or small – and provide you with a blueprint for how to develop an industrial property investment strategy and how to get the right advice so you can invest with confidence. You’ll leave the seminar with the knowledge of what support you’ll need and the questions you should ask of real estate agents, lawyers, property managers, tenants and more.